Jason Novelty Company produces a specialty item. Management has provided the following information:

Actual sales = 80,000 units Budget & actual production = 100,000 units Selling price = $54 per unit Direct materials = $9 per unit Variable manufacturing costs (direct labour & variable overhead)= $4 per unit

Variable administrative costs = $6 per unit Fixed manufacturing overhead = $5 per Total fixed administrative costs = $300,000 per annum

Required:

1. (a) Compute the Gross Profit under absorption costing.

2. (b) Compute the Contribution Margin and Net Profit under variable costing.

3. (c) Compute the Throughput Margin and the Net Profit under throughput costing.